NYSE:DK

Stock Analysis Report

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Executive Summary

Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States.


Snowflake Analysis

Average dividend payer with worrying balance sheet.


Similar Companies

Share Price & News

How has Delek US Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.1%

DK

2.9%

US Oil and Gas

1.1%

US Market


1 Year Return

-35.5%

DK

-34.7%

US Oil and Gas

4.6%

US Market

Return vs Industry: DK matched the US Oil and Gas industry which returned -34.7% over the past year.

Return vs Market: DK underperformed the US Market which returned 4.6% over the past year.


Shareholder returns

DKIndustryMarket
7 Day-4.1%2.9%1.1%
30 Day9.5%10.6%5.5%
90 Day4.4%-17.0%-4.9%
1 Year-32.2%-35.5%-31.7%-34.7%7.0%4.6%
3 Year-4.2%-13.3%-29.9%-37.2%28.6%20.1%
5 Year-33.3%-43.2%-38.1%-48.0%52.5%35.3%

Price Volatility Vs. Market

How volatile is Delek US Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Delek US Holdings undervalued compared to its fair value and its price relative to the market?

1.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DK ($21.27) is trading above our estimate of fair value ($12.64)

Significantly Below Fair Value: DK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DK is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: DK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DK is overvalued based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Delek US Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

62.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DK's revenue (6.7% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: DK's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DK's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Delek US Holdings performed over the past 5 years?

34.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DK is currently unprofitable.

Growing Profit Margin: DK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DK is unprofitable, but has reduced losses over the past 5 years at a rate of 34% per year.

Accelerating Growth: Unable to compare DK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DK is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-22.9%).


Return on Equity

High ROE: DK has a negative Return on Equity (-8.75%), as it is currently unprofitable.


Next Steps

Financial Health

How is Delek US Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: DK's short term assets ($2.0B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: DK's short term assets ($2.0B) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: DK's debt to equity ratio (151.6%) is considered high.

Reducing Debt: DK's debt to equity ratio has increased from 58.3% to 151.6% over the past 5 years.

Debt Coverage: DK's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: Insufficient data to determine if DK's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Delek US Holdings's current dividend yield, its reliability and sustainability?

5.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DK's dividend (5.83%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: DK's dividend (5.83%) is in the top 25% of dividend payers in the US market (4.71%)


Stability and Growth of Payments

Stable Dividend: DK's dividend payments have been volatile in the past 10 years.

Growing Dividend: DK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: DK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DK's dividends in 3 years are forecast to be covered by earnings (81.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Ezra Yemin (51yo)

15.92yrs

Tenure

US$9,060,908

Compensation

Mr. Ezra Uzi Yemin has been the Chairman and Chief Executive Officer of Delek Logistics GP, LLC, the General Partner of Delek Logistics Partners, LP since April 2012 and its President since August 22, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Ezra's total compensation ($USD9.06M) is above average for companies of similar size in the US market ($USD4.92M).

Compensation vs Earnings: Ezra's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Ezra Yemin
Chairman15.92yrsUS$9.06m0.98% $15.4m
Avigal Soreq
Executive VP & COO0.083yrUS$1.68m0.026% $409.9k
Frederec Green
Executive Vice President of Corporate Development0.083yrUS$1.72m0.17% $2.6m
Reuven Spiegel
Executive VP & CFOno datano datano data
Danny Norris
Chief Accounting Officerno datano datano data
Blake Fernandez
Senior Vice President of Investor Relations & Market Intelligence0.83yrno datano data
Abigail Yates
Executive VP0.083yrno datano data
Michael Ralsky
Vice President of Government Affairsno datano datano data
Jared Serff
Executive VP & Chief Human Resources Officer3yrsno datano data
Keith Johnson
Vice President of Investor Relationsno datano datano data

0.5yrs

Average Tenure

51yo

Average Age

Experienced Management: DK's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ezra Yemin
Chairman15.92yrsUS$9.06m0.98% $15.4m
David Wiessman
Director2.83yrsUS$214.98k0.077% $1.2m
William Finnerty
Independent Director6.08yrsUS$252.48k0.027% $422.8k
Shlomo Zohar
Lead Independent Directorno dataUS$240.98k0.018% $276.2k
Richard Marcogliese
Independent Director0.33yrno data0.0027% $42.5k
Vicky Sutil
Independent Director1.25yrsUS$209.73k0.0036% $55.7k
Gary Sullivan
Independent Director4.75yrsUS$237.23k0.028% $433.5k

3.8yrs

Average Tenure

66yo

Average Age

Experienced Board: DK's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Delek US Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Delek US Holdings, Inc.
  • Ticker: DK
  • Exchange: NYSE
  • Founded: 2001
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: US$1.564b
  • Shares outstanding: 73.52m
  • Website: https://www.delekus.com

Number of Employees


Location

  • Delek US Holdings, Inc.
  • 7102 Commerce Way
  • Brentwood
  • Tennessee
  • 37027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DKNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2006
DEHDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2006

Biography

Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates in three segments: Refining, Logistics, and Retail. The Refining segment processes crude oil and other purchased feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminals. This segment owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as two biodiesel facilities in Crossett, Arkansas, and Cleburne, Texas. The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties. This segment owns or leases capacity on approximately 400 miles of crude oil transportation pipelines, approximately 450 miles of refined product pipelines, an approximately 700-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 9.9 million barrels of active shell capacity; and owns and operates ten light product distribution terminals, as well as markets light products using third-party terminals. The Retail segment owns and leases 252 convenience store sites located primarily in Texas and New Mexico. Its convenience stores offer various grades of gasoline and diesel under the DK or Alon brand name; and food products and service, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise, as well as money orders. The company serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, the U.S. government, and independent retail fuel operators. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 07:25
End of Day Share Price2020/05/26 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.